Professional Documents
Culture Documents
9903
AN ACT GRANTING THE SOCIAL SECURITY SYSTEM A ONE - TIME AUTHORITY TO
CONDONE PENALTIES ON UNREMITTED OR DELINQUENT CONTRIBUTIONS BY
EMPLOYERS
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
Section 1. Short Title. - This Act shall be known as the "Social Security Condonation Law of
2009".
Section 2. Condonation of Penalty. - Any employer who is delinquent or has not remitted all
contributions due and payable to the Social Security System (SSS), including those with pending
cases either before the Social Security Commission, courts or Office of the Prosecutor involving
collection of contributions and/or penalties, may within six (6) months from the effectivity of this Act:
(a) remit said contributions; or
(b) submit a proposal to pay the same in installments, subject to the implementing rules and
regulations which the Social Security Commission may prescribe: Provided, That the
delinquent employer submits the corresponding collection lists together with the remittance
or proposal to pay installments: Provided, further,That upon approval and payment in full or
in installments of contributions due and payable to the SSS, all such pending cases filed
against the employer shall be withdrawn without prejudice to the refiling of the case in the
event the employer fails to remit in full the required delinquent contributions or defaults in the
payment of any installment under the approved proposal.
Section 3. Installment Proposal. - In the event that a delinquent employer chooses to submit an
installment proposal, the SSS shall give due course to approve and grant the same, subject to the
implementing rules and regulations as the Social Security Commission shall
prescribe: Provided, That the employer shall remit, upon submission of the installment proposal, a
down payment of not less than five percent (5%) of its total contribution delinquency: Provided,
further, That the employer shall remit the balance thereof in equal monthly installments within a
period not exceeding forty - eight (48) months from the date of approval of the
proposal: Provided, finally, That the installment payments shall bear an interest of three percent (3%)
per annum.
Section 4. Effectivity of Condonation. - The penalty provided under Section 22(a) of Republic Act
No. 8282 shall be condoned by virtue of this Act when and until all the delinquent contributions are
remitted by the employer to the SSS: Provided, That, in case the employer fails to remit in full the
required delinquent contributions, or defaults in the payment of any installment under the approved
proposal, within the availment period provided in this Act, the penalties are deemed reimposed from
the time the contributions first become due, to accrue until the delinquent account is paid in
full: Provided, further, That for reason of equity, employers who settled arrears in contributions
before the effectivity of this Act shall likewise have their accrued penalties waived.
lawphil
Section 5. Implementing Rules and Regulations. - Within thirty (30) days after the effectivity of this
Act, the Social Security Commission shall issue the necessary rules and regulations for the effective
implementation of this Act.
Section 6. Separability Clause. - In the event that any provision of this Act is declared
unconstitutional, the validity of the other provisions shall not be affected by such declaration.
Section 7. Repealing Clause. - All Jaws, decrees, orders, rules and regulations and other issuances
or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.
Section 8. Effectivity. - This Act shall take effect fifteen (15) days following its publication in the
Official Gazette or in at least two (2) newspapers of general circulation.
Approved,
PROSPERO C. NOGRALES
Speaker of the House of Representatives
This Act which is a consolidation of House Bill No. 5922 and Senate Bill No. 2454 was finally passed
by the House of Representatives and the Senate on October 14, 2009 and November 9, 2009.
EMMA LIRIO-REYES
Secretary of the Senate
MARILYN B. BARUA-YAP
Secretary General House of
Representatives
ROMARICO J. MENDOZA,
Petitioner,
- versus -
BRION, J.,
Chairperson,
PERALTA,
BERSAMIN,
ABAD, and
VILLARAMA, JR., JJ.
Promulgated:
October 19, 2011
unpaid contributions does not suffice; it is payment within, and only within, the six
(6)-month availment period that triggers the applicability of RA No. 9903.
True, the petitioners case was pending with us when RA No. 9903 was
passed. Unfortunately for him, he paid his delinquent SSS contributions in
2007. By paying outside of the availment period, the petitioner effectively placed
himself outside the benevolent sphere of RA No. 9903. This is how the law is
written: it condones employers and only those employers with unpaid SSS
contributions or with pending cases who pay within the six (6)-month period
following the laws date of effectivity. Dura lex, sed lex.